Dillard's 2003 Annual Report Download - page 15

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• a pretax gain of $3.1 million ($2.0 million after tax or $0.02 per diluted share) from an investee partnership of
the Company who received an unusual distribution in the settlement of a receivable.
2001
The items below amount to a net $5.6 million pretax charge ($3.6 million after tax or $0.04 per diluted share).
• a pretax asset impairment and store closing charge of $3.8 million ($2.4 million after tax or $0.03 per diluted
share) related to certain stores (see Note 13 of the Notes to Consolidated Financial Statements).
• a pretax gain of $9.4 million ($6.0 million after tax or $0.07 per diluted share) on the early extinguishment of
debt.
2000
The items below amount to a net $38.2 million pretax charge ($21.3 million after tax or $0.23 per diluted share).
• a pretax asset impairment and store closing charge of $51.4 million ($36.0 million after tax or $0.40 per diluted
share) related to certain stores.
• a pretax gain of $42.7 million ($27.3 million after tax or $0.30 per diluted share) on the early extinguishment of
debt.
• a pretax gain of $46.9 million ($30.0 million after tax or $0.33 per diluted share) on the Company’s change in
its method of accounting for inventories under the retail inventory method.
1999
The items below amount to a net $83.5 million pretax charge ($64.3 million after tax or $0.63 per diluted share).
• a pretax asset impairment and store closing charge of $69.7 million ($55.5 million after tax or $0.55 per diluted
share) related to certain stores.
• a pretax loss of $13.8 million ($8.8 million after tax or $0.08 per diluted share) on the Company’s change in its
method of accounting for inventories under the retail inventory method.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
EXECUTIVE OVERVIEW
Dillard’s, Inc. (“the Company” or “we”) operates 328 retail department stores in 29 states. Our stores are located in
suburban shopping malls and offer a broad selection of fashion apparel and home furnishings. We offer an appealing and
attractive assortment of merchandise to our customers at a fair price. We seek to enhance our income by maximizing the
sale of this merchandise to our customers. We do this by promoting and advertising our merchandise and by making our
stores an attractive and convenient place for our customers to shop.
Fundamentally, the Company’s business model is to offer the customer a compelling price/value relationship through the
combination of high quality products and services at a competitive price. The Company seeks to deliver a high level of
profitability and cash flow by:
• maximizing the effectiveness of our pricing and brand awareness;
• minimizing costs through leveraging our centralized overhead expense structure;
• Sourcing;
• Credit operations;
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